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Thailand’s Finance Ministry Grants Licenses to Three Crypto Exchanges

The Ministry of Finance in Thailand has granted working licenses to three crypto trading companies and denied permits for two businesses seeking to become regulated exchanges. The ministry has also issued a working permit to a cryptocurrency broker and dealer.

Cash2Coins Co Ltd (website: cash2coins.com) and Southeast Asia Digital Exchange Co Ltd (website: seadex.io) failed to meet the SEC’s ideal standards concerning asset maintenance system and digital know-your-customer protocol. The regulator, by orders of the Ministry, denied their licensing requests for running a crypto exchange, asserting that their IT security and cybersecurity were not adequate.

The ministry has asked both the crypto exchanges to stop their business operations in Thailand. It has also given owners a deadline of January 14 to notify their users to withdraw or transfer their crypto assets from Cash2Coins and Seadex hot wallets. The companies will be liable to report their balance sheet to the SEC after returning those digital assets.

The SEC also confirmed that Cash2Coins and Southeast Asia could reapply for the business license after taking care of the concerns raised in response to the first application.

One Licensing Request Underway

The SEC confirmed that it is reviewing a request by Coin Asset Co (website: coinasset.co.th) to come to be a licensed cryptocurrency exchange in Thailand. The regulator has decided to put the application on hold after noticing irregularities in Coin Asset’s management.

“There has been a change of company executives, which is material information for the consideration of the application,” the SEC explained. “While the Ministry of Finance is considering the material change, the company may continue business operation by virtue of the Transitional Provisions of the Emergency Degree on Digital Asset Businesses.”

Thailand Could See Startups Influx

The decision has made Thailand one of the most attractive markets in Asia for crypto businesses. The country in 2018 approved crypto and ICO regulations. And in June, it legalized seven cryptocurrencies, including Bitcoin and Ethereum. More likely, the South Asian economy could witness a growing influx of crypto emigrants from nearby countries India and China, whereby stiff regulations cap the growth of blockchain startups.

The Thai government is also exploring the blockchain technology for creating tools that could track tax evasions, manage national identities, and support the development and functioning of their proposed digital Baht.